Washington County Attorney’s Office charged Bayport resident Karl Evald Auleciems with 74 tax-related felonies, The Minnesota Department of Revenue announced in a press release.
He is charged with 32 felony counts of failing to file sales and use tax returns, 32 felony counts of failing to pay or collect and remit sales and use tax, five felony counts of filing false or fraudulent individual income tax returns and five felony counts of failing to pay individual income tax
According to the criminal complaint from WCAO, Auleciems operated an unregistered business, KEASons Enterprises, which he used as a conduit to rent out a Lake Elmo property and other properties to short-term renters.
The complaint states that Auleciems used short-term rental websites to list his properties and then conducted the rental transactions through his business, avoiding the websites while still charging rental sales tax. The complaint alleges that he failed to file sales and use tax returns and pay sales tax for these transactions between April 2017 and May 2020. The complaint states that Auleciems also fraudulently filed individual income tax returns and failed to pay income tax on his actual earned income for tax years 2015 through 2019.
According to the complaint, Auleciems owes more than $194,900 in unpaid tax, penalties, and interest.
Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both.
is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at firstname.lastname@example.org. Tipsters may choose to remain anonymous.